Question: Answer this question using the following marginal benefit and marginal cost functions for activity A : MB = 100 - 5 A MC = 20

Answer this question using the following marginal benefit and marginal cost functions for activityA:

MB= 100 - 5A

MC= 20 + 3A

The optimal level ofAis

Question 1 options:

40.

30.

20.

10.

0.

Question 2

Answer this question using the following marginal benefit and marginal cost functions for activityA:

MB= 100 - 5A

MC= 20 + 3A

The fifth unit of activityAwill

Question 2 options:

Increase net benefits by 75.

Reduce net benefits by 35.

Increase net benefits by 40.

Decrease net benefits by 40.

Reduce net benefits by 75.

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